[{"bbox": [97, 153, 1134, 212], "category": "Text", "text": "between taxpayers and the tax administration and providing some services. Specifically, there have been\nimprovements in taxpayers' registration, tax return filing, and payments."}, {"bbox": [97, 220, 1134, 339], "category": "Text", "text": "Remaining issues in the tax administration include i) tax arrears and non-compliance management, which require better monitoring and intervention; ii) taxpayers' database and the tax identification number (TIN), which still present inconsistencies and information gaps; iii) poor integration between the registration process with the Business Registration Service (SERVE) and tax registration."}, {"bbox": [97, 347, 1134, 438], "category": "Text", "text": "Through its TA programs PROSIVU and PIFTAC (see Relations with IMF), Australia has provided TA to the Tax Authority, mainly for revenue collection and auditing businesses. EU TA to the Tax Authority under AAP 2022 is expected to start in the 4th quarter of 2024."}, {"bbox": [97, 446, 1134, 597], "category": "Text", "text": "The government has introduced reforms in the tax administration that will undoubtedly have an impact on revenue\ncollection. However, at this stage, there is still no evidence of that due to the effects of the COVID-19 pandemic\non the system's functioning and the behaviour of economic agents. The World Bank report of December 2022\nreveals a slight increase in total revenue in the first three quarters of 2022 compared to the same period of the\nprevious year. However, there still needs to be a gap regarding the collection returns from the pre-pandemic period."}, {"bbox": [97, 605, 1134, 785], "category": "Text", "text": "However, some positive developments are worth mentioning in line with the Integrated National Financial\nFramework (INFF). According to this report, the first National Diaspora Engagement Policy and Remittance\nMobilisation Strategy have been launched, setting diaspora finance as a significant source of financing in the\nmedium term. Pro-health tax measures were integrated with the national budget. Climate tagging has been\nintroduced, with the adoption of specific markers, enhancing the transparency of climate-related activities while\ndemonstrating climate accountability and the possible financing gaps of the environmental policy."}, {"bbox": [97, 793, 1134, 914], "category": "Text", "text": "The government has underscored the importance of strengthening budget credibility by improving execution rates, coordinating with line ministries and development partners, and maintaining the legal framework. The focus is prioritising enhancements to public procurement, including human resources, aiming to enhance the effectiveness of public expenditure and guarantee prudent utilisation of Timor-Leste's substantial public savings."}, {"bbox": [97, 922, 1134, 1012], "category": "Text", "text": "The new MoF team, which emerged from the May 2023 general elections, has expressed the intention to pursue\nthe PFM reform initiated by the previous government and integrate its objectives and indicators of this reform into\nthe MoF's five-year work plan."}, {"bbox": [97, 1020, 1134, 1079], "category": "Text", "text": "In conclusion, the public finance management reform strategy is sufficiently relevant and credible, including\ndomestic revenue mobilisation, and the eligibility criterion is met."}, {"bbox": [85, 1099, 554, 1129], "category": "Section-header", "text": "2.3.4 Transparency and Oversight of the Budget"}, {"bbox": [97, 1148, 1134, 1239], "category": "Text", "text": "The government submitted the 2023 budget proposal to the National Parliament on October 3, 2022, and approved the budget law on November 17, 2022. Following the May 2023 general elections, the President promulgated an amending budget for 2023 on August 29 and the budget for 2024 on December 22."}, {"bbox": [97, 1247, 1134, 1306], "category": "Text", "text": "The approved budgets were published on the MoF's website. According to the Budget Support Guidelines, the entry point has, therefore, been respected."}, {"bbox": [97, 1314, 1134, 1587], "category": "Text", "text": "The Open Budget Survey (OBS) 2023 report highlights Timor-Leste's mixed performance in budget transparency.\nThe country has improved by promptly publishing the Pre-Budget Statement and Mid-Year Review online.\nHowever, it has decreased the availability of other budget information by limiting the Year-End Report to internal\nuse, reducing the information in the Executive's Budget Proposal, and cutting details in the In-Year Reports. To\nenhance transparency, Timor-Leste needs to publish the Year-End Report online promptly, provide more\ncomprehensive data in the Executive's Budget Proposal and In-Year Reports, expand the inclusiveness of the\nCitizen's Budget, and ensure budgetary information is accessible and published in the Budget Book. Moreover,\nimproving the Budget Transparency Portal's reliability, timeliness, and accessibility is essential. In the OBS 2023,\nTimor-Leste has a transparency score of 37, decreasing from 52 in the 2021 survey."}, {"bbox": [1023, 1679, 1143, 1706], "category": "Page-footer", "text": "Page 16 of 41"}]